Any office for the Comptroller associated with the Currency is shaking up the realm of short-term financing by motivating banks to supply rate that is high-interest to subprime borrowers as an option to payday loan providers.

In a significant break from previous regulators, Comptroller Joseph Otting stated Wednesday which he desires banking institutions to originate loans of $300 to $5,000 to borrowers with FICO ratings of 680 or below, with few other parameters beyond “sound underwriting.” The newest OCC tips could start a $90 billion market to institutions that are financial.Continue reading→